Date: 06/30/2020
Page 1 of 4
Item 1. Introduction 1st Discount Brokerage, Inc., (“1DB”) is
registered with the Securities and Exchange Commission as a
brokerdealer, member of FINRA and Securities Investor Protection
Corporation, and a state registered investment adviser registered
in the following states: AR, CA, FL, NJ, PA & TX. Brokerage and
investment advisory services and fees differ and it is important
for you to understand these differences. Free and simple tools are
available to research firms and financial professionals at
www.investor.gov/CRS, which also provides educational materials
about broker-dealers, investment advisers, and investing.
Item 2. Relationships and Services: What investment services and
advice can you provide me? Our firm offers brokerage and investment
advisory services to retail investors including buying and selling
securities.
BrokerDealer Service - Brokerage Accounts Our firm offers brokerage
services to retail investors including buying and selling
securities. We offer mutual funds, exchange traded funds (ETFs),
domestic and international equities, options, fixed income
securities, certificates of deposit (CDs), variable annuities,
non-traded business development companies (BDCs), and private
placements.
Our firm provides limited discretionary authority for the following
services – buying and selling securities. Our firm does not monitor
your accounts. A discretionary commission based account is
available with an approved registered representative only. If you
invest on a discretionary basis, our firm will buy and sell
investments in your accounts without requiring your pre-approval on
an ongoing basis until you notify us in writing to switch. Our firm
offers non-discretionary services for retirement planning, estate
planning, investment recommendations, personal investment
strategies, and other consulting services (MyCFO). You make the
ultimate decision regarding the purchase or sale of investments.
Our firm does not monitor your accounts.
Investment Adviser Services - Advisory Accounts Our investment
advisor firm provides the following investment advisory services.
Our advisory services are offered through “wrap fee programs”. •
Traditional Investment Advisory Services – Discretionary or
Non-Discretionary (Freedom Program):
Our firm primarily offers the following investment advisory
services to retail clients: portfolio management via a wrap fee
program (we review your portfolio, investment strategy, and
investments); financial planning (we assess your financial
situation and provide advice to meet your goals);
solicitor/selection of other advisers (we select a third party
adviser for you to use). As part of our standard services, we
typically monitor client accounts on an annual basis. Our firm
offers both discretionary advisory services (where our firm makes
the decision regarding the purchase or sale of investments) as well
as nondiscretionary services (where the retail investor makes the
ultimate decision). We limit the types of investments that are
recommended since not every type of investment vehicle is needed to
create an appropriate portfolio. Please also see our Form ADV Part
2A (“Brochure”), specifically Items 4, 8 & 13.
• ROBO Digital Advisory Services - Discretionary: Our advisor
monitors market activity to ensure your portfolio is rebalanced
appropriately by an algorithm. There are no dedicated personnel
monitoring individual client accounts. We have discretionary
investment authority that allows us to buy and sell investments in
your account without asking you in advance by using an automated
algorithm. Our minimum account size is $1.
1St Discount Brokerage, Inc. Form Customer Relationship
Summary
Date: 06/30/2020
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Our ROBO advisory services will cover a limited selection of
investments, including our asset allocation services using exchange
traded funds (ETFs) and managed portfolios from our investment
advisor. An algorithm is used to manage client accounts. More
information about the limitations of the algorithm can be found on
our Form ADV Part 2A (“Robo Advisory Brochure”) Item 8.
For additional information including minimum investment amounts,
please see https://www.1db.com or adviserinfo.sec.gov for our Form
ADV, 2A brochure (Items 4 and 7 of Part 2A, or Items 4A and 5 of
Part 2A Appendix 1); our Regulation Best Interest Disclosure at
www.1db.com/CRS. CONVERSATION STARTER: Ask your financial
professional – 1. Given my financial situation, should I choose an
investment advisory service? Should I choose a brokerage service?
Should I choose both types of services? Why or why not? 2. How will
you choose investments to recommend to me? 3. What is your relevant
experience, including your licenses, education and other
qualifications? What do these qualifications mean?
Item 3. Fees, Costs, Conflicts, and Standard of Conduct. a . What
Fees will I pay?
• BrokerDealer Service - Brokerage Accounts If you open a brokerage
account, you will pay us a transactionbased fee, generally referred
to as a commission, every time you buy or sell an investment. Some
investments (such as mutual funds and variable annuities) impose
additional fees that will reduce the value of your investment over
time. Products such as mutual funds and variable annuities charge
up-front commissions, as well as fees that are charged on an
on-going basis for as long as you hold the investment (“trails”).
Also, with certain investments such as variable annuities, you may
have to pay fees such as “surrender charges” to sell the
investment. We pass along regulatory trading activities fees. If we
buy a security from you, or sell a security to you for our own
account (as “principal”), we may “mark up” or “mark down”, which is
a benefit to us. With mutual funds, this fee (typically called a
“load”) reduces the value of your investment. Our fees vary and are
negotiable. The amount you pay will depend, for example, on how
much you buy or sell, what type of investment you buy or sell, and
what kind of account you have with us. The more transactions in
your account, the more fees we charge you. We therefore have an
incentive to encourage you to engage in transactions more
frequently and in greater amounts. In addition to the foregoing
investment fees, you will typically pay, and we will receive a
portion of, certain fees associated with your brokerage account,
including fees paid to the clearing firm or account custodian, as
well as fees for certain services that you select, such as wire
transfers or margin interest, account maintenance fees, paper
documents fees, account inactivity fees, and a termination or
transfer fee when your brokerage account is terminated or
transferred to another broker-dealer. Additional Information: You
will pay fees and costs whether you make or lose money on your
investments. Fees and costs will reduce any amount of money you
make on your investments over time. Please make sure you understand
what fees and costs you are paying. For more detailed information
about our fees and costs please review our Regulation Best Interest
Disclosure and Fee Schedule found at www.1db.com/CRS. • Investment
Adviser Services - Advisory Accounts Our fees vary depending on the
services you receive. You will pay an ongoing asset-based fee in
advance, while ROBO digital advisory fees are charged monthly in
arrears. The amount of assets in your account affects our advisory
fee; the more assets you have in your advisory account, including
cash, the more you will pay us and thus we have an incentive to
increase those assets in order to increase our fee. The amount paid
to our firm and your financial
1St Discount Brokerage, Inc. Form Customer Relationship
Summary
Date: 06/30/2020
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professional generally does not vary based on the type of
investments we select on your behalf. The assetbased fee reduces
the value of your account and will be deducted from your account.
If your advisory program is a “wrap” program, you will typically
pay a wrap fee, which includes the advisory fee and the costs for
the execution of securities transactions and other services. The
wrap fee is usually higher than the advisory fees for non-wrap
programs because it includes these transaction costs, which are
“wrapped” together with the advisory fee (i.e., you will not pay a
separate advisory fee). A wrap fee presents a conflict because it
creates an incentive for us to encourage you to increase the assets
in your account in order for you to pay us more in wrap fees. We
also have the ability to charge commissions. Additionally, we have
the following compensation structure: Other: Ticket Charges and
Annual Freedom Account Maintenance Fee. Please also see Items 4, 5,
6, 7 & 8 of our Brochure, available on our website
www.1db.com/CRS.
Some investments (e.g., mutual funds, UITs, etc) impose additional
fees (e.g., transactional fees and product-level fees) that reduce
the value of your investment over time. The same goes for any
additional fees you pay to a custodian. Paying for a wrap fee
program could cost more than separately paying for advice and for
transactions if there are infrequent trades in your account. You
will pay our fee quarterly or monthly even if you do not buy or
sell. An asset based fee may cost more than a transactionbased fee,
but you may prefer an assetbased fee if you want continuing advice
or want someone to make investment decisions for you. You may
prefer a wrap fee program if you prefer the certainty of a monthly
or quarterly fee regardless of the number of transactions you have.
Additional Information: You will pay fees and costs whether you
make or lose money on your investments. Fees and costs will reduce
any amount of money you make on your investments over time. Please
make sure you understand what fees and costs you are paying. Please
also see our Brochure for additional details. CONVERSATION STARTER:
Ask your financial professional – Help me understand how these fees
and costs might affect my investments. If I give you $10,000 to
invest, how much will go to fees and costs, and how much will be
invested for me? b. What are your legal obligations to me when
providing a recommendation as my broker-dealer or when
acting as my investment adviser? How else does your firm make money
and what conflicts of interest do you have? When we provide you
with a recommendation as your broker-dealer or act as your
investment adviser, we have to act in your best interest and not
put our interest ahead of yours. At the same time, the way we make
money creates some conflicts with your interests. You should
understand and ask us about these conflicts because they can affect
the recommendations and investment advice we provide to you. We
must eliminate these conflicts or tell you about them and in some
cases reduce them. We have policies and procedures in place to
mitigate the influence of these conflicts. Here are some examples
to help you understand what this means. • We receive payments from
third party product sponsors and managers (or their affiliates),
such as mutual fund
or insurance companies, when we recommend or sell certain products,
and we may also receive ongoing payments, such as 12B-1 fees or
trails, from them in your brokerage account. As such, we have an
incentive to recommend (or to invest your assets in) products that
pay us more compensation or products of third-parties that pay us
over products of third parties that do not pay us, or pay us less.
When you transfer assets such as mutual funds from our financial
institution into your advisory account at our firm, we may receive
12b-1 fees or servicing fees from some of the funds (in our
capacity as a broker-dealer). We keep these fees, and they create
an incentive for us.
• We have an incentive to advise you to invest in certain
investments, such as the Apex sweep program, because Apex Clearing,
the manager or sponsor of the investment, shares with us revenue it
earns on those investments.
• Our firm engages in principal trading (buying or selling
investments from your account for our own accounts) which can lead
to price manipulation or the sale of unwanted securities to you. We
may buy or sell securities to you for its own account (with your
consent in advisory accounts). Because we earn compensation (such
as
1St Discount Brokerage, Inc. Form Customer Relationship
Summary
Date: 06/30/2020
Page 4 of 4
commission equivalents, mark-ups, mark-downs, and spreads) and can
receive other benefits in principal transactions, we have an
incentive to trade with you on a principal basis and to recommend
securities that we hold in inventory.
CONVERSATION STARTER: Ask your financial professional – How might
your conflicts of interest affect me, and how will you address
them?
c. How do your financial professionals make money? We pay our
financial professionals and their supervisors a portion of the
commissions or investment advisory fees that we receive. As noted
above, the commissions we receive generally vary based on the
investments purchased and sold and the volume of trading, and the
advisory fees we receive generally vary based on the investment
advisory program selected. The portion of the commissions or fees
we pay to the financial professional also varies among financial
professionals depending on the financial professionals’ agreement
with the firm. This creates an incentive for our financial
professionals to sell more investments as a registered
representative of our broker-dealer and to increase advisory
account assets as an associated person of our investment adviser to
qualify for a higher portion of commissions and investment advisory
fees. In the case of certain investment funds and products, the
issuer or the sponsor provides our financial professionals other
forms of compensation, such as expense reimbursement for travel
associated with educational or similar business meetings, financial
assistance in covering the cost of marketing and sales events, and
small gifts. The receipt of these payments presents a conflict
because it creates an incentive for the financial professional to
recommend those investments or funds whose issuers or sponsors
offer these forms of compensation.
Item 4. Disciplinary History: Do you or your financial
professionals have legal or disciplinary history? Yes. Our firm has
disciplinary history addressed in our Form ADV or Form BD, and some
of our financial professionals may also have a legal or
disciplinary history. Please visit Investor.gov/CRS for a free and
simple search tool to research our firm and our financial
professionals. CONVERSATION STARTER: Ask your financial
professional – As a financial professional, do you have any
disciplinary history? For what type of conduct?
Item 5. Additional Information. For additional information about
our broker-dealer and investment advisory services, please visit
www.1db.com. You can request a copy of this Form CRS Customer
Relationship Summary by contacting us in writing at 8927 Hypoluxo
Rd, Ste A-5, Lake Worth, FL 33467. You can also call us at
1-561-515-3200 or email
[email protected] to request up- to-date
information and request a copy of this Form CRS Customer
Relationship Summary. CONVERSATION STARTER: Who is my primary
contact person? Is he or she a representative of an investment
adviser or a broker-dealer? Who can I talk to if I have concerns
about how this person is treating me?
BRANCH-ACCOUNT NUMBER
REGISTERED REP CODE
NEW ACCOUNT ENTITY APPLICATION & AGREEMENT I (We) would like to
open a brokerage account with Apex Clearing Corporation. ACCOUNT
INFORMATION (NOTE: ALL INFORMATION MUST BE COMPLETED. PLEASE TYPE
OR PRINT)
ACCOUNT TYPE CASH (Customer Account Agreement following this
application)
MARGIN (Request Margin & Truth in Lending Agreements) OPTIONS
(Request Option Agreement)
CUSTOMER TYPE
C-CORPORATION (Request Corporate Resolution) S-CORPORATION (Request
Corporate Resolution)
STATUTORY/BUSINESS TRUST FOREIGN FINANCIAL INSTITUTION
FOREIGN BANK (Request Foreign Certificate Regarding Foreign
Banks)
LIMITED LIABILITY COMPANY (Request LLC Agreement. Enter the tax
classification: ) (C = C-Corporation, S = S-Corporation, P =
Partnership)
ACCOUNT INFORMATION
BUSINESS ADDRESS CITY STATE ZIP CODE
AUTHORIZED SIGNER E-MAIL ADDRESS
DATE OF BIRTH SOCIAL SECURITY NO. U.S. CITIZEN YES NO
IF NO, WHAT COUNTRY?
BUSINESS TELEPHONE NO. MAIL TO (Check One) MAILING BUSINESS P.O.
BOX
U.S. ENTITY
YES NO FAX NO.
MAILING ADDRESS (If Different than Business Address) CITY STATE ZIP
CODE
ATTENTION:
TRADING AUTHORIZATION TO ANOTHER PARTY
Make sure to request the Trading Authorization Form from your
introducing broker-dealer to grant trading authority to a third
party.
IS THE ACCOUNT HOLDER A CONTROL PERSON OF A PUBLICLY TRADED
COMPANY? (Director, Officer, or 10% Stock Holder)
YES NO If Yes, Please list the name of the company(s) and the stock
ticker symbol. ___________________________ I (We) promise to notify
you of any change.
ARE YOU, OR ANYONE AUTHORIZED TO TRADE IN YOUR ACCOUNT, AFFILIATED
WITH OR WORK WITH OR WORK FOR A MEMBER FIRM OF A STOCK EXCHANGE OR
FINRA?
YES NO If Yes, Name of Firm:
________________________________________________________________________________________________________
TO BE ANSWERED IF THE ACCOUNT HOLDER IS A BROKER DEALER (WHICH
INCLUDES A FOREIGN BROKER DEALER, OR A FOREIGN BANK ACTING AS A
BROKER OR DEALER): IS THIS ACCOUNT A PAB ACCOUNT, MEANING A
PROPRIETARY SECURITIES ACCOUNT OF A BROKER OR DEALER AS DEFINED BY
SEC 15C3-3(A)(16)?
YES NO (Selection Required) If “yes,” please complete a “New
Account Form for Proprietary Account Broker (PAB) form, along with
a “New Account Application Entity” form. NOTE: The New Account Form
is not sufficient to have a proprietary account of a Broker Dealer
opened.
ADDITIONAL ACCOUNT INFORMATION
IS THE ACCOUNT MAINTAINED FOR A CURRENT OR FORMER POLITICALLY
EXPOSED PERSON OR PUBLIC OFFICIAL? (Includes U.S. & Foreign
Individuals)
YES NO
IF YES, PLEASE PROVIDE THE NAME(S) OF THAT OFFICIAL AND OFFICIAL’S
IMMEDIATE FAMILY MEMBERS. (Including Former Spouses)
OFFICIAL & IMMEDIATE FAMILY MEMBER(S)
IF YES, PLEASE PROVIDE THE NAME OF THE RELATED POLITICAL
ORGANIZATION. POLITICAL ORGANIZATION
IS THE ACCOUNT MAINTAINED FOR A FOREIGN FINANCIAL INSTITUTION AS
DEFINED BY TITLE 31 OF THE CODE OF FEDERAL REGULATIONS? (If Yes,
Please complete the “Foreign Financial Institution Due Diligence
Questionnaire” Form)
YES NO
IS THE ACCOUNT A FOREIGN BANK ORGANIZED UNDER FOREIGN LAW AND
LOCATED OUTSIDE OF THE UNITED STATES AS DEFINED BY TITLE 31 OF THE
CODE OF FEDERAL REGULATIONS? (If Yes, Please ensure the
“Certification Regarding Correspondent Accounts” is complete in
addition to the “Foreign Financial Institution Due Diligence
Questionnaire” Form)
NOTE: Broker-Dealers are prohibited from establishing, maintaining,
administering, or managing correspondent accounts in the United
States for Foreign Shell Banks. The prohibition does not include
Foreign Shell Banks that are regulated affiliates.
YES NO
IF YES, PLEASE LIST U.S. AGENT FOR SERVICE OF PROCESS. U.S.
AGENT
69057P-NEWF 07/02/2020 Page 1 of 12
SUITABILITY INFORMATION
TIME HORIZON (The number of years planned to achieve a particular
financial goal)
LIQUIDITY NEEDS (The ability to quickly and easily convert all or a
portion of the account assets into cash without experiencing
significant loss)
Short (Less than 3 Years) (01) Long (8 Years+) (03) Average (4-7
Years) (02)
Very Important (01) Not Important (03) Somewhat Important
(02)
INVESTMENT PROFILE
Capital Preservation (05) Income (04) Growth & Income
(02)
Growth (03)
Speculation (06)
None (00) Limited (01) Good (02) Extensive (03)
Under $25,000 (01) $200,001 to $300,000 (24) $25,001 to $50,000
(02) $300,001 to $500,000 (25) $50,001 to $100,000 (03) $500,001 to
$1,200,000 (26) $100,001 to $200,000 (23) Over $1,200,001
(27)
LIQUID NET WORTH (Cash & Liquid Investments only)
TOTAL NET WORTH (Excluding Residence) RISK TOLERANCE
Under $50,000 (01) $50,001 to $100,000 (02) $100,001 to $200,000
(22) $200,001 to $500,000 (23) $500,001 to $1,000,000 (24)
$1,000,001 to $5,000,000 (25) Over $5,000,001 (26)
Under $50,000 (01) $50,001 to $100,000 (02) $100,001 to $200,000
(22) $200,001 to $500,000 (23) $500,001 to $1,000,000 (24)
$1,000,001 to $5,000,000 (25) Over $5,000,001 (26)
Low (01) Medium (02) High (03)
Tax Bracket: %
LARGE TRADER ID LARGE TRADER ID (Please provide if you have been
assigned previously for any of your accounts) EFFECTIVE DATE
ENHANCED ACCOUNT FEATURES
FREE DIVIDEND REINVESTMENT Select whether or not you would like to
have your dividends reinvested on all eligible securities. You can
always change your selection later by calling your investment
representative.
PLEASE SELECT ONE OF THE FOLLOWING OPTIONS: Reinvest dividends on
ALL eligible securities.
Please do not reinvest any dividends.
E-DOCUMENTS ENROLLMENT When you enroll your account in E-Docs, you
will receive trade confirmations, account statements, tax-related
documents, proxies, prospectuses, annual reports, and all other
eligible account documents electronically. An e-mail notification
will be sent to the Account Owner’s e-mail address on the same day
that any electronic documents become available. Just log into your
account to access E-Docs and view, print, or download your
electronic documents.
PLEASE SEE YOUR INVESTMENT REPRESENTATIVE FOR ENROLLMENT
INFORMATION.
SERVICE INSTRUCTIONS (Voluntary Sweep Program)
By opening your account and/or selecting yes below, you agree to
enroll in the Apex Clearing Corporation Sweep Program (the “Sweep
Program”) and agree that you have read and understand the terms and
conditions of the Sweep Program. The Sweep Program terms and
conditions and the list of banks participating and/or products
available in the Sweep Program can be located at
ApexClearing.com/disclosures. Free credit balances in the account,
including dividends and proceeds from the sale of securities that
are credited to the account while enrolled in the Sweep Program,
may automatically be swept in accordance with the terms of the
Sweep Program. Further, you agree Apex Clearing Corporation may
make changes to the Sweep Program terms and conditions or any
products or banks in the Sweep Program at any time in Apex’s sole
discretion. Your enrollment in the Sweep Program does not guarantee
free credit balances in your account will be swept. If you wish to
opt out of the Sweep Program you may select “No” in this Section or
you may notify your introducing firm at any time.
YES No
DIRECT COMMUNICATION RULE 14b-1(c)
Rule 14b-1(c) of the Securities Exchange Act, unless you object,
requires us to disclose to an issuer, upon its request, the names,
addresses, and securities positions of our customers who are
beneficial owners of the issuer’s securities, held by us in nominee
name. The issuer would be permitted to use your name and other
related information for corporation communication only. If you
object to this disclosure, check the box below.
Yes, I do object to the disclosure of such information.
W-9 CERTIFICATION
Under penalties of perjury, I certify that: (1) The number shown on
this form is my correct taxpayer identification number (or I am
waiting for a number to be issued to me), and (2) I am not subject
to backup withholding because: (a) I am exempt from backup
withholding, or (b) I have not been notified by the Internal
Revenue Service (IRS) that I am subject to backup withholding as a
result of a failure to report all interest or dividends, or (c) the
IRS has notified me that I am no longer subject to backup
withholding, and (3) I am a U.S. citizen or other U.S. person
(defined below), and (4) the FATCA code(s) entered on this form (if
any) indicating that I am exempt from FATCA reporting is
correct.
Definition of a U.S. person. For federal tax return purposes, you
are considered a U.S. person if you are: An individual who is a
U.S. citizen or U.S. resident alien, A partnership, corporation,
company, or association created or organized in the United States
or under the laws of the United States, an estate (other than a
foreign estate), or a domestic trust (as defined in Regulations
section 301.7701-7).
The Internal Revenue Service does not require your consent to any
provisions of this document other than the certifications required
to avoid backup withholding.
EXCEPTIONS (See Instructions)
EXEMPTION FROM FATCA REPORTING CODE (If Any):
69057P-NEWF 07/02/2020 Page 2 of 12
EXEMPT LEGAL ENTITY CUSTOMER
IS THE ACCOUNT MAINTAINED FOR LEGAL ENTITY CUSTOMERS WHO ARE EXEMPT
FROM IDENTIFYING AND VERIFYING BENEFICIAL OWNERS AS DEFINED UNDER
31 CFR 1010.230 (E) (2-3)? (See list below of Apex Acceptable
Exemptions)
YES NO
IF YES, SELECT THE EXEMPTION BELOW; IF NO PLEASE COMPLETE THE
ATTACHED EXHIBIT ENTITLED “ENTITY CERTIFICATION REGARDING
BENEFICIAL OWNERS OF LEGAL ENTITY CUSTOMERS” AND THE “ENTITY
ACCOUNT DUE DILIGENCE QUESTIONNAIRE” WILL ALSO NEED TO BE
COMPLETED.
A FINANCIAL INSTITUTION REGULATED BY A FEDERAL FUNCTIONAL REGULATOR
OR A BANK REGULATED BY A STATE BANK REGULATOR;
A DEPARTMENT OR AGENCY OF THE UNITED STATES, OF ANY STATE, OR OF
ANY POLITICAL SUBDIVISION OF ANY STATE;
ANY ENTITY (OTHER THAN A BANK) WHOSE COMMON STOCK OR ANALOGOUS
EQUITY INTERESTS ARE LISTED ON THE NEW YORK, AMERICAN OR NASDAQ
STOCK EXCHANGE (EACH, A LISTED ENTITY); AN ISSUER OF A CLASS OF
SECURITY REGISTERED UNDER SECTION 12 OF THE SECURITIES EXCHANGE ACT
OF 1934 OR THAT IS REQUIRED TO FILE REPORTS UNDER SECTION 15(D) OF
THAT ACT; AN INVESTMENT COMPANY, AS DEFINED IN SECTION 3 OF THE
INVESTMENT COMPANY ACT OF 1940, THAT IS REGISTERED WITH THE
SECURITIES AND EXCHANGE COMMISSION (SEC) UNDER THAT ACT; AN
INVESTMENT ADVISOR, AS DEFINED IN SECTION 202(A) (11) OF THE
INVESTMENT ADVISORS ACT OF 1940, THAT IS REGISTERED WITH THE SEC
UNDER THAT ACT;
ANY OTHER ENTITY REGISTERED WITH THE SEC UNDER THE SECURITIES
EXCHANGE ACT OF 1934;
A REGISTERED ENTITY, COMMODITY POOL OPERATOR, COMMODITY TRADING
ADVISOR, RETAIL FOREIGN EXCHANGE DEALER, SWAP DEALER OR MAJOR SWAP
PARTICIPANT, EACH AS DEFINED IN SECTION 1A OF THE COMMODITY
EXCHANGE ACT, THAT IS REGISTERED WITH THE COMMODITY FUTURES TRADING
COMMISSION;
A PUBLIC ACCOUNTING FIRM REGISTERED UNDER SECTION 102 OF THE
SARBANES-OXLEY ACT;
AN INSURANCE COMPANY THAT IS REGULATED BY A STATE.
SIGNATURES
I authorize Apex Clearing Corporation (‘Apex”) to obtain a consumer
report at the time of application to verify my creditworthiness and
to obtain a consumer report from time to time for updates,
renewals, extensions, and collection activity on any approved
account. Upon my written request, Apex will disclose to me whether
it obtained a report, and if so, the name and address of the
consumer-reporting agency that provided it. In the event that my
account is denied, as a result of the consumer report verification,
I authorize Apex to provide to my introducing broker the reason(s)
for such denial.
BY SIGNING THIS APPLICATION, I (WE) ACKNOWLEDGE THE FOLLOWING: (1)
THAT PARAGRAPH 8 OF THE CUSTOMER ACCOUNT AGREEMENT CONTAINS A
PREDISPUTE ARBITRATION CLAUSE AND IN ACCORDANCE WITH THIS AGREEMENT
I (WE) AGREE IN ADVANCE TO ARBITRATE ANY CONTROVERSIES WHICH MAY
ARISE BETWEEN OR AMONG ME (US), MY BROKER, AND/OR CLEARING FIRM,
(2) RECEIPT OF A COPY OF THE CUSTOMER ACCOUNT AGREEMENT FOLLOWING
THIS APPLICATION AND MY (OUR) AGREEMENT WITH THE TERMS THEREIN AND
(3) THE INFORMATION PROVIDED ABOVE IS ACCURATE AND CORRECT.
SIGNATURE DATE
SIGNATURE DATE
FOR OFFICE USE ONLY
FIRST TRADE [IB] REGISTERED PRINCIPAL SIGNATURE CUSTOMER I.D.
VERIFIED (Must be completed)
Yes [IB] REGISTERED REPRESENTATIVE SIGNATURE DATE OPENED
FDID (If you would like to designate the FDID, please provide it
here. Otherwise an ID will be assigned at account opening)
CAT ACCOUNT TYPE (Selection Required) OATS ACCOUNT TYPE
CAT ACCOUNT TYPES: A - Institutional Customer - An institutional
account as defined in FINRA Rule 4512(c) E - Employee Account - An
employee or associated person of your Broker-Dealer F - Foreign - A
non-broker-dealer foreign affiliate or non-reporting Foreign
Broker-Dealer I - Individual Customer - An account that does not
meet the definition of FINRA Rule 4512(c) and is also not a
proprietary account. O - Market Making - See CAT FAQ C5 V - Firm
Agency Average Price Account P - Other Proprietary X - Error
Account - Error account of the firm
OATS ACCOUNT TYPES: A - Institutional Customer - An institutional
account as defined in FINRA Rule 4512(c) C - Combined - An order
representing more than one type of account E - Employee Account -
An employee or associated person of your Broker-Dealer. I -
Individual Customer - An account that does not meet the definition
of FINRA Rule 4512(c) and is also not a proprietary account. O -
Market Making P - Other Proprietary X - Error Account - Error
account of the firm
AN EXCHANGE OR CLEARING AGENCY, AS DEFINED IN SECTION 3 OF THE
SECURITIES EXCHANGE ACT OF 1934, THAT IS REGISTERED UNDER SECTION 6
OR 17A OF THAT ACT;
69057P-NEWF 07/02/2020 Page 3 of 12
I (We) acknowledge that I (we) have received, read and understand
the FORM CRS Customer Relationship Summary of 1st Discount
Brokerage, Inc.
I. GENERAL INSTRUCTIONS
What is this form?
To help the government fight financial crime, Federal regulation
requires certain financial institutions to obtain, verify, and
record information about the beneficial owners of legal entity
customers. Legal entities can be abused to disguise involvement in
terrorist financing, money laundering, tax evasion, corruption,
fraud, and other financial crimes. Requiring the disclosure of key
individuals who own or control a legal entity (i.e., the beneficial
owners) helps law enforcement investigate and prosecute these
crimes.
Who has to complete this form?
This form must be completed by the person opening a new account on
behalf of a legal entity with any of the following U.S. financial
institutions: (i) a bank or credit union; (ii) a broker or dealer
in securities; (iii) a mutual fund; (iv) a futures commission
merchant; or (v) an introducing broker in commodities. For the
purposes of this form, a legal entity includes a corporation,
limited liability company, or other entity that is created by a
filing of a public document with a Secretary of State or similar
office, a general partnership, and any similar business entity
formed in the United States or a foreign country. Legal entity does
not include sole proprietorships, unincorporated associations, or
natural persons opening accounts on their own behalf.
What information do I have to provide?
This form requires you to provide the name, address, date of birth
and Social Security number (or passport number or other similar
information, in the case of non- U.S persons) for the following
individuals (i.e., the beneficial owners):
(i) Each individual, if any, who owns, directly or indirectly, 10
percent or more of the equity interests of the legal entity
customer (e.g., each natural person that owns 10 percent or more of
the shares of a corporation); and
(ii) An individual with significant responsibility for managing the
legal entity customer (e.g., a Chief Executive Officer, Chief
Financial Officer, Chief Operating Officer, Managing Member,
General Partner, President, Vice President, or Treasurer). The
number of individuals that satisfy this definition of “beneficial
owner” may vary. Under section (i), depending on the factual
circumstances, up to four individuals (but as few as zero) may need
to be identified. Regardless of the number of individuals
identified under section (i), you must provide the identifying
information of one individual under section (ii). It is possible
that in some circumstances the same individual might be identified
under both sections (e.g., the President of Acme, Inc. who also
holds a 30 percent equity interest). Thus, a completed form will
contain the identifying information of at least one individual
(under section (ii)), and up to ten individuals (i.e., one
individual under section (ii) and ten 10 percent equity holders
under section (i)). The financial institution may also ask to see a
copy of a driver’s license or other identifying document for each
beneficial owner listed on this form.
69057P-NEWF 07/02/2020 Page 4 of 12
II. CERTIFICATION OF BENEFICIAL OWNER(S) & ENTITY
OFFICER(S)
1 In lieu of a passport number, Non-U.S. Persons may also provide a
Social Security Number, an alien identification card number, or
number and country of issuance of any other government-issued
document evidencing nationality or residence and bearing a
photograph or similar safeguard. 2 In lieu of a passport number,
Non-U.S. Persons may also provide a Social Security Number, an
alien identification card number, or number and country of issuance
of any other government-issued document evidencing nationality or
residence and bearing a photograph or similar safeguard.
CERTIFICATION OF BENEFICIAL OWNER(S)
Persons opening an account on behalf of a legal entity must provide
the following information:
NAME AND TITLE OF NATURAL PERSON OPENING ACCOUNT:
NAME, TYPE AND ADDRESS OF LEGAL ENTITY FOR WHICH THE ACCOUNT IS
BEING OPENED:
The following information for each individual, if any, who,
directly or indirectly, through any contract, arrangement,
understanding, relationship or otherwise, owns 10 percent or more
of the equity interests of the legal entity listed above.
NAME DATE OF BIRTH ADDRESS (Residential Address) FOR U.S. PERSONS:
SOCIAL SECURITY NUMBER
FOR NON-U.S. PERSONS SOCIAL SECURITY NUMBER: PASSPORT NUMBER AND
COUNTRY OF ISSUANCE, OR OTHER SIMILAR IDENTIFICATION NUMBER 1
CERTIFICATION OF ENTITY OFFICER(S)
The following information for each individual with significant
responsibility for managing the legal entity listed above including
entity officers, such as: • An executive officer or senior manager
(e.g., Chief Executive Officer, Chief Financial Officer, Chief
Operating Officer, Managing Member,
General Partner, President, Vice President, Treasurer); or • Any
other individual who regularly performs similar functions.
[If appropriate, an individual listed under section (c) above may
also be listed in this section (d)]
NAME DATE OF BIRTH ADDRESS (Residential Address) FOR U.S. PERSONS:
SOCIAL SECURITY NUMBER
FOR NON-U.S. PERSONS SOCIAL SECURITY NUMBER: PASSPORT NUMBER AND
COUNTRY OF ISSUANCE, OR OTHER SIMILAR IDENTIFICATION NUMBER 2
69057P-NEWF 07/02/2020 Page 5 of 12
3 In lieu of a passport number, Non-U.S. Persons may also provide a
Social Security Number, an alien identification card number, or
number and country of issuance of any other government-issued
document evidencing nationality or residence and bearing a
photograph or similar safeguard.
CERTIFICATION OF ENTITY OFFICER(S)
NAME DATE OF BIRTH ADDRESS (Residential Address) FOR U.S. PERSONS:
SOCIAL SECURITY NUMBER
FOR NON-U.S. PERSONS SOCIAL SECURITY NUMBER: PASSPORT NUMBER AND
COUNTRY OF ISSUANCE, OR OTHER SIMILAR IDENTIFICATION NUMBER 3
NATURE OF ACCOUNT
Please indicate the Industrial Classification your business is
classified under below:
(1) Agriculture, Forestry, and Fishing (2) Mining (3) Construction
(4) Manufacturing (5) Transportation, Communications, Electric,
Gas, and Sanitary Services (6) Wholesale Trade (7) Retail Trade (8)
Finance, Insurance, and Real Estate (9) Services (10) Public
Administration
SIGNATURES
I, _____________________________________________ (name of natural
person opening account), hereby certify, to the best of my
knowledge, that the information provided above is complete and
correct.
SIGNATURE DATE
LEGAL ENTITY IDENTIFIER (Optional)
FOR OFFICE USE ONLY
I, _____________________________________________, am not aware of
facts that could reasonably call into question the reliability of
the above information provided by the applicant.
SIGNATURE DATE
CUSTOMER ACCOUNT AGREEMENT
This Customer Account Agreement (the “Agreement”) sets forth the
respective rights and obligations of Apex Clearing Corporation
(“you” or “your” or “Apex”) and the Customer’s (as defined below)
brokerage firm (the “Introducing Broker”), and the customer(s)
identified on the New Account Application (the “Customer”) in
connection with the Customer’s brokerage account with the
Introducing Broker (“the Account”). The Customer hereby agrees as
follows with respect to the Account, which the Customer has
established with the Introducing Broker for the purchase, sale or
carrying of securities or contracts relating thereto and/or the
borrowing of funds, which transactions are cleared through you. To
help the government fight the funding of terrorism and money
laundering, Federal law requires all financial institutions to
obtain, verify, and record information that identifies each person
who opens an account. In order to open an account, the Customer
will provide information that will allow you to identify the
Customer including, but not limited to, the Customer’s name,
address, date of birth, and the Customer’s driver’s license or
other identifying documents.
1. Applicable Rules and Regulations. All transactions for the
Account shall be subject to the constitution, rules, regulations,
customs and usages of the exchange or market and its clearing
house, if any, upon which such transactions are executed, except as
otherwise specifically provided in this Agreement.
2. Definitions. "Obligations" means all indebtedness, debit
balances, liabilities or other obligations of any kind of the
Customer to you, whether now existing or hereafter arising.
"Securities and other property" shall include, but shall not be
limited to, money, securities, commodities or other property of
every kind and nature and all contracts and options relating
thereto, whether for present or future delivery. a. Investment
Objective Definitions. “Capital Preservation” - a conservative
investment strategy characterized by a desire to
avoid risk of loss; “Income” - strategy focused on current income
rather than capital appreciation; “Growth” - investing in stocks
with strong earnings and/or revenue growth or potential;
“Speculation” - taking larger risks, usually by frequent trading,
with hope of higher than-average gain. All strategies involve
various types and levels of risk, the most common of which are
market, credit, inflation, business and interest rate.
3. Breach; Security Interest. Whenever in your discretion you
consider it necessary for your protection, or for the protection of
the Customer’s Introducing Broker or in the event of, but not
limited to; (i) any breach by the Customer of this or any other
agreement with you or (ii) the Customer's failure to pay for
securities and other property purchased or to deliver securities
and other property sold, you may sell any or all securities and
other property held in any of the Customer's accounts (either
individually or jointly with others), cancel or complete any open
orders for the purchase or sale of any securities and other
property, and/or borrow or buy-in any securities and other property
required to make delivery against any sale, including a short sale,
effected for the Customer, all without notice or demand for deposit
of collateral, other notice of sale or purchase, or other notice or
advertisement, each of which is expressly waived by the Customer,
and/or you may require the Customer to deposit cash or adequate
collateral to the Customer's account prior to any settlement date
in order to assure the performance or payment of any open
contractual commitments and/or unsettled transactions. You have the
right to refuse to execute securities transactions for the Customer
at any time and for any reason. Any and all securities and other
property belonging to the Customer or in which the Customer may
have an interest held by you or carried in any of the Customer's
accounts with you (either individually or jointly with others)
shall be subject to a first and prior security interest and lien
for the discharge of the Customer's obligations to you, wherever or
however arising and without regard to whether or not you have made
advances with respect to such securities and other property, and
you are hereby authorized to sell and/or purchase any and all
securities and other property in any of the Customer's accounts,
and/or to transfer any such securities and other property among any
of the Customer's accounts to the fullest extent of the law and
without notice where allowed. The losses, costs and expenses,
including but not limited to reasonable attorneys' fees and
expenses, incurred and payable or paid by you in the (i) collection
of a debit balance and/or any unpaid deficiency in the accounts of
the Customer with you or (ii) defense of any matter arising out of
the Customer’s securities transactions, shall be payable to you by
the Customer. The Customer understands that because of
circumstances beyond broker- dealers control, its customers’ voting
rights may be impaired. For example, if the stock of a company that
another customer has purchased has not yet been received from the
seller(s), then other customers’ abilities to vote that company’s
stock could be impaired until those shares are received. In
addition, if the stock of a company that the Customer has purchased
has not yet been
69057P-NEWF 07/02/2020 Page 7 of 12
received from the seller(s), then payments received by the Customer
from the Introducing Broker, in lieu of the dividends on that stock
not yet received, may receive tax treatment less favorable than
that accorded to dividends.
4. Cancellation. You are authorized, in your discretion, should you
for any reason whatsoever deem it necessary for your protection,
without notice, to cancel any outstanding order, to close out the
accounts of the Customer, in whole or in part, or to close out any
commitment made on behalf of the Customer.
5. Payment of Indebtedness Upon Demand. The Customer shall at all
times be liable for the payment upon demand of any obligations
owing from the Customer to you, and the Customer shall be liable to
you for any deficiency remaining in any such accounts in the event
of the liquidation thereof (as contemplated in Paragraph 3 of this
Agreement or otherwise), in whole or in part, by you or by the
Customer; and the Customer shall make payment of such obligations
upon demand.
6. Accounts Carried as Clearing Broker. The Customer understands
that you are carrying the accounts of the Customer as clearing
broker by arrangement with the Customer's Introducing Broker
through whose courtesy the account of the Customer has been
introduced to you. Until receipt from the Customer of written
notice to the contrary, you may accept from and rely upon the
Customer’s Introducing Broker for (a) orders for the purchase or
sale in said account of securities and other property, and (b) any
other instructions concerning the Customer's accounts. The Customer
represents that the Customer understands that you act only to clear
trades introduced by the Customer's Introducing Broker and to
effect other back office functions for the Customer's introducing
broker. The Customer confirms to you that the Customer is relying
for any advice concerning the Customer's accounts solely on the
Customer's Introducing Broker. The Customer understands that all
representatives, employees and other agents with whom the Customer
communicates concerning the Customer's account are agents of the
Introducing Broker, and not your representatives, employees or
other agents and the Customer will in no way hold you liable for
any trading losses that the Customer may incur. The Customer
understands that you are not a principal of or partner with, and do
not control in any way, the Introducing Broker or its
representatives, employees or other agents. The Customer
understands that you will not review the Customer's accounts and
will have no responsibility for trades made in the Customer's
accounts. You shall not be responsible or liable for any acts or
omissions of the Introducing Broker or its representatives,
employees or other agents. Notwithstanding the foregoing, in the
event that the Customer initiates a claim against you in your
capacity as clearing broker and does not prevail, the Customer
shall be responsible for the costs and expenses associated with
your defense of such claim. The Customer understands you shall be
entitled to exercise and enforce directly against the Customer all
rights granted to the Introducing Broker. a. Accounts Carried as
Custodian. In some cases the Customer’s account is being carried by
arrangement with the Customer’s
Investment Advisor or Investment Manager, who uses you as their
Broker-Dealer custodian. The Customer acknowledges that your role
as custodian is to hold or custody account assets, distribute or
collect funds on behalf of the Customer’s account, execute and
clear trades under instruction of the Customer’s Investment Advisor
or Investment Manager, generate account statements and provide
other custodial services as may be mandated by various regulatory
standards and requirements. The Customer understands that in the
capacity as custodian, you will not offer investment advice, review
the Customer’s accounts, and will have no responsibility for trades
made in the Customer’s accounts. Additionally, in your capacity as
custodian, you will not verify the accuracy of management fees that
the Customer pays to Investment Advisors or Investment Managers
pursuant to the terms of the Investment Management Agreement
executed between the Customer and the Investment Advisor or
Investment Manager. Notwithstanding the foregoing, in the event
that the Customer initiates a claim against you in your capacity as
custodial broker and does not prevail, the Customer shall be
responsible for the costs and expenses associated with your defense
of such claim.
7. Communications. You may send communications to the Customer at
the Customer's address on the New Account Application or at such
other address as the Customer may hereafter give you in writing,
and all communications so sent, whether by mail, telegraph, or
otherwise, shall be deemed given to the Customer personally,
whether actually received or not. Reports of execution of orders
and statements of accounts of the Customer shall be conclusive if
not objected to in writing to you, the former within five (5) days
and the latter within ten (10) days, after forwarding by you by
mail or otherwise. In consideration of your sending any mail to me
in care of a Post Office Box Address or a third party, I hereby
agree that “all correspondence of any nature whatsoever” sent to me
in such address will have the same force and effect as if it had
been delivered to me personally.
8. ARBITRATION AGREEMENT. THIS AGREEMENT CONTAINS A PREDISPUTE
ARBITRATION CLAUSE. BY SIGNING AN ARBITRATION AGREEMENT THE PARTIES
AGREE AS FOLLOWS:
69057P-NEWF 07/02/2020 Page 8 of 12
a. ALL PARTIES TO THIS AGREEMENT ARE GIVING UP THE RIGHT TO SUE
EACH OTHER IN COURT, INCLUDING THE RIGHT TO A TRIAL BY JURY EXCEPT
AS PROVIDED BY THE RULES OF THE ARBITRATION FORUM IN WHICH A CLAIM
IS FILED;
b. ARBITRATION AWARDS ARE GENERALLY FINAL AND BINDING; A PARTY’S
ABILITY TO HAVE A COURT REVERSE OR MODIFY AN ARBITRATION AWARD IS
VERY LIMITED.
c. THE ABILITY OF THE PARTIES TO OBTAIN DOCUMENTS, WITNESS
STATEMENTS AND OTHER DISCOVERY IS GENERALLY MORE LIMITED IN
ARBITRATION THAN IN COURT PROCEEDINGS;
d. THE ARBITRATORS DO NOT HAVE TO EXPLAIN THE REASON(S) FOR THEIR
AWARD UNLESS, IN AN ELIGIBLE CASE, A JOINT REQUEST FOR AN EXPLAINED
DECISION HAS BEEN SUBMITTED BY ALL PARTIES TO THE PANEL AT LEAST 20
DAYS PRIOR TO THE FIRST SCHEDULED HEARING DATE.
e. THE PANEL OF ARBITRATORS MAY INCLUDE A MINORITY OF ARBITRATORS
WHO WERE OR ARE AFFILIATED WITH THE SECURITIES INDUSTRY.
f. THE RULES OF SOME ARBITRATION FORUMS MAY IMPOSE TIME LIMITS FOR
BRINGING A CLAIM IN ARBITRATION. IN SOME CASES, A CLAIM THAT IS
INELIGIBLE FOR ARBITRATION MAY BE BROUGHT IN COURT.
g. THE RULES OF THE ARBITRATION FORUM IN WHICH THE CLAIM IS FILED,
AND ANY AMENDMENTS THERETO, SHALL BE INCORPORATED INTO THIS
AGREEMENT.
THE FOLLOWING ARBITRATION AGREEMENT SHOULD BE READ IN CONJUNCTION
WITH THE DISCLOSURES ABOVE. ANY AND ALL CONTROVERSIES, DISPUTES OR
CLAIMS BETWEEN THE CUSTOMER AND YOU, OR THE INTRODUCING BROKER, OR
THE AGENTS, REPRESENTATIVES, EMPLOYEES, DIRECTORS, OFFICERS OR
CONTROL PERSONS OF YOU OR THE INTRODUCING BROKER, ARISING OUT OF,
IN CONNECTION WITH, FROM OR WITH RESPECT TO (a) ANY PROVISIONS OF
OR THE VALIDITY OF THIS AGREEMENT OR ANY RELATED AGREEMENTS, (b)
THE RELATIONSHIP OF THE PARTIES HERETO, OR (c) ANY CONTROVERSY
ARISING OUT OF YOUR BUSINESS, THE INTRODUCING BROKER'S BUSINESS OR
THE CUSTOMER'S ACCOUNTS, SHALL BE CONDUCTED PURSUANT TO THE CODE OF
ARBITRATION PROCEDURE OF THE FINANCIAL INDUSTRY REGULATORY
AUTHORITY (“FINRA”). THE DECISION AND AWARD OF THE ARBITRATOR(S)
SHALL BE CONCLUSIVE AND BINDING UPON ALL PARTIES, AND ANY JUDGMENT
UPON ANY AWARD RENDERED MAY BE ENTERED IN A COURT HAVING
JURISDICTION THEREOF, AND NEITHER PARTY SHALL OPPOSE SUCH
ENTRY.
No person shall bring a putative or certified class action to
arbitration, nor seek to enforce any pre-dispute arbitration
agreement against any person who has initiated in court a putative
class action; or who is a member of a putative class who has not
opted out of the class with respect to any claims encompassed by
the putative class action until: (i) the class certification is
denied; or (ii) the class is de-certified; or (iii) the customer is
excluded from the class by the court. Such forbearance to enforce
an agreement to arbitrate shall not constitute a waiver of any
rights under this agreement except to the extent stated
herein.
9. Representations. The Customer represents that the Customer is of
majority age. The Customer represents either that the Customer is
not an employee of any exchange, or of any corporation of which any
exchange owns a majority of the capital stock, or of a member of
any exchange, or of a member firm or member corporation registered
on any exchange or of a bank, trust company, insurance company or
of any corporation, firm or individual engaged in the business
dealing either as broker or as principal in securities, bills of
exchange, acceptances or other forms of commercial paper, or
alternatively, that the Customer has obtained and will provide to
you additional documentation which may include information required
under FINRA Rule 407 from its employer authorizing the Customer to
open and maintain an account with you. If the Customer is a
corporation, partnership, trust or other entity, the Customer
represents that its governing instruments permit this Agreement,
that this Agreement has been authorized by all applicable persons
and that the signatory on the New Account Application is authorized
to bind the Customer. The Customer represents that the Customer
shall comply with all applicable laws, rules and regulations in
connection with the Customer's account. The Customer further
represents that no one except the Customer has an interest in the
account or accounts of the Customer with you.
10. Joint Accounts. If the New Account Application indicates that
the Account shall consist of more than one person, the Customer's
obligations under this Agreement shall be joint and several.
References to the "Customer" shall include each of the customers
identified on the New Account Application. You may rely on transfer
or other instructions from any one of the Customers in a joint
account, and such instructions shall be binding on each of the
Customers. You may deliver securities or other property to, and
send confirmations; notices, statements and communications of every
kind, to any one of the Customers, and such action shall be binding
on each of the Customers. Notwithstanding the foregoing, you are
authorized in your discretion to require joint action by the joint
tenants with respect to any matter concerning the joint account,
including but not limited to the giving or
69057P-NEWF 07/02/2020 Page 9 of 12
cancellation of orders and the withdrawal of money or securities.
In the case of Tenants by the Entirety accounts, joint action will
be required for all matters concerning the joint account. Tenants
by Entirety is not recognized in certain jurisdictions, and, where
not expressly allowed, will not be a permitted designation of the
account.
11. Other Agreements. If the Customer trades any options, the
Customer agrees to be bound by the terms of your Customer Option
Agreement. The Customer understands that copies of these agreements
are available from you and, to the extent applicable, are
incorporated by reference herein. The terms of these other
agreements are in addition to the provisions of this Agreement and
any other written agreements between you and the Customer.
12. Data Not Guaranteed. The Customer expressly agrees that any
data or online reports is provided to the Customer without
warranties of any kind, express or implied, including but not
limited to, the implied warranties of merchantability, fitness of a
particular purpose or non-infringement. The Customer acknowledges
that the information contained in any reports provided by you is
obtained from sources believed to be reliable but is not guaranteed
as to its accuracy of completeness. Such information could include
technical or other inaccuracies, errors or omissions. In no event
shall you or any of your affiliates be liable to the Customer or
any third party for the accuracy, timeliness, or completeness of
any information made available to the Customer or for any decision
made or taken by the Customer in reliance upon such information. In
no event shall you or your affiliated entities be liable for any
special incidental, indirect or consequential damages whatsoever,
including, without limitation, those resulting from loss of use,
data or profits, whether or not advised of the possibility of
damages, and on any theory of liability, arising out of or in
connection with the use of any reports provided by you or with the
delay or inability to use such reports.
13. Payment for Order Flow Disclosure. Depending on the security
traded and absent specific direction from the Customer, equity and
option orders are routed to market centers (i.e., broker-dealers,
primary exchanges or electronic communication networks) for
execution. Routing decisions are based on a number of factors
including the size of the order, the opportunity for price
improvement and the quality of order executions, and decisions are
regularly reviewed to ensure the duty of best execution is met. You
or the Introducing Broker may receive compensation or other
consideration for the placing of orders with market centers for
execution. The amount of the compensation depends on the agreement
reached with each venue. The source and nature of compensation
relating to the Customer's transactions will be furnished upon
written request.
14. Credit Check. You are authorized, in your discretion, should
you for any reason deem it necessary for your protection to request
and obtain a consumer credit report for the Customer.
15. Miscellaneous. If any provision of this Agreement is held to be
invalid or unenforceable, it shall not affect any other provision
of this Agreement. The headings of each section of this Agreement
are descriptive only and do not modify or qualify any provision of
this Agreement. This Agreement and its enforcement shall be
governed by the laws of the state of Texas and shall cover
individually and collectively all accounts which the Customer has
previously opened, now has open or may open or reopen with you, or
any introducing broker, and any and all previous, current and
future transactions in such accounts. Except as provided in this
Agreement, no provision of this Agreement may be altered, modified
or amended unless in writing signed by your authorized
representative. This Agreement and all provisions shall inure to
the benefit of you and your successors, whether by merger,
consolidation or otherwise, your assigns, the Introducing Broker,
and all other persons specified in Paragraph 8. You shall not be
liable for losses caused directly or indirectly by any events
beyond your reasonable control, including without limitation,
government restrictions, exchange or market rulings, suspension of
trading or unusually heavy trading in securities, a general change
in economic, political or financial conditions, war or strikes. You
may transfer the accounts of the Customer to your successors and
assigns. This Agreement shall be binding upon the Customer and the
heirs, executors, administrators, successors and assigns of the
Customer. Failure to insist on strict compliance with this
Agreement is not considered a waiver of your rights under this
Agreement. At your discretion, you may terminate this Agreement at
any time on notice to the Customer, the Customer will continue to
be responsible for any obligation incurred by the Customer prior to
termination. The Customer may not assign the Customer’s rights or
delegate the Customer’s obligations under this Agreement, in whole
or in part, without your prior consent.
16. Sweep Program. If the Customer elects to participate in one of
your FDIC or money market sweep programs, the Customer acknowledges
and agrees that: (a) the Customer has read and understands the
sweep program terms and conditions and/or prospectuses available at
http://www.apexclearing.com/disclosures/ and is aware of the
products available in such sweep programs; (b) you may make changes
to your FDIC and/or money market sweep programs and products at any
time, in your sole discretion and with or without notice to
Customer; (c) the free credit balances in the Customer’s Account
may begin being included
69057P-NEWF 07/02/2020 Page 10 of 12
in the sweep program upon Account opening; and (d) you have no
obligation to monitor the applicable sweep program elected for the
Customer’s Account or to make recommendations about, or changes to,
the sweep program that might be beneficial to the Customer.
17. SIPC Protection. As a member of the Securities Investor
Protection Corporation (SIPC), funds are available to meet customer
claims up to a ceiling of $500,000, including a maximum of $250,000
for cash claims. For additional information regarding SIPC
coverage, including a brochure, please contact SIPC at (202)
371-8300 or visit www.sipc.org. Apex has purchased an additional
insurance policy through a group of London Underwriters (with
Lloyd's of London Syndicates as the Lead Underwriter) to supplement
SIPC protection. This additional insurance policy becomes available
to customers in the event that SIPC limits are exhausted and
provides protection for securities and cash up to certain limits.
Similar to SIPC protection, this additional insurance does not
protect against a loss in the market value of securities.
18. Tax Treaty Eligibility. This agreement shall serve as the
Customer’s certification that you are eligible to receive tax
treaty benefits between the country or (of) residence indicated on
the new account form and the country (ies) of origin holding
jurisdiction over the instruments held within the customer’s
account.
19. Trusted Contact. “Under FINRA Rule 4512 Apex Clearing
Corporation is required to disclose to you (the customer) that Apex
Clearing Corporation or an associated person of Apex Clearing
Corporation is authorized to contact the trusted contact person and
disclose information about the customer’s account to address
possible financial exploitation, to confirm the specifics of the
customer’s current contact information, health status, or the
identity of any legal guardian, executor, trustee or holder of a
power of attorney, or as otherwise permitted by FINRA Rule
2165.
20. ACH Agreement. If I request Automated Clearinghouse (“ACH”)
transactions from my Account at Clearing Firm, I authorize Clearing
Firm to originate or facilitate transfer credits/debits to/from my
eligible bank account. Transactions sent through the NACHA network
will be subject to all applicable rules of NACHA and all rules set
forth in Federal Reserve Operating circulars or other applicable
laws and regulations. ACH deposits to my brokerage account are
provisional. If the beneficiary bank does not receive final and
complete payment for a payment order transferred through ACH, the
beneficiary bank is entitled to recover from the beneficiary any
provisional credit and Clearing Firm may charge my account for the
transaction amount. I understand Clearing Firm or my Broker may not
notify me of any returned or rejected ACH transfers. I agree to
hold Clearing Firm and Clearing Firm’s agents free of liability for
compliance with these instructions. I hereby agree to hold harmless
Clearing Firm and each of its affiliates, offices, directors,
employees, and agents against, any claims, judgments, expenses,
liabilities or costs of defense or settlement relating to: (a) any
refusal or failure to initiate or honor any credit or debit
request, by Clearing Firm or my Broker, whether (i) due to a lack
of funds necessary to credit my account; (ii) due to inadvertence,
error caused by similarity of account holder names or (iii)
otherwise provided Clearing Firm has not acted in bad faith; (b) if
the routing number is incorrect or the routing number or other
information changes at another U.S. financial institution or (c)
any loss, damage, liability or claim arising, directly or
indirectly, from any error, delay or failure which is caused by
circumstances beyond Clearing Firm’s direct control. To the extent
permitted by applicable law or regulation, Clearing Firm hereby
disclaims all warranties, express or implied, and in no event shall
Clearing Firm be liable for any special indirect, incidental, or
consequential damages whatsoever resulting from the ACH electronic
service or any ACH transactions. Nothing in this herein shall
constitute a commitment or undertaking by Clearing Firm or my
Broker to effect any ACH transaction or otherwise act upon my
instructions or those of my Broker with respect to any account at
Clearing Firm. This authorization shall remain in full force and
effect until I revoke authorization by written notification to my
Broker that is forwarded to Clearing Firm. I understand that
Clearing Firm has the right to terminate or suspend the ACH
agreement at any time and without notice.
69057P-NEWF 07/02/2020 Page 11 of 12
PRIVACY POLICY
Apex Clearing Corporation (“Apex”) carries your account as a
clearing broker by arrangement with your broker-dealer or
registered investment advisor as Apex’s introducing client. At
Apex, we understand that privacy is an important issue for
customers of our introducing firms. It is our policy to respect the
privacy of all accounts that we maintain as clearing broker and to
protect the security and confidentiality of non-public personal
information relating to those accounts. Please note that this
policy generally applies to former customers of Apex as well as
current customers.
Personal Information Collected In order to service your account as
a clearing broker, information is provided to Apex by your
introducing firm who collects information from you in order to
provide the financial services that you have requested. The
information collected by your introducing firm and provided to Apex
or otherwise obtained by Apex may come from the following sources
and is not limited to: • Information included in your applications
or forms, such as your name, address, telephone number, social
security number,
occupation, and income; • Information relating to your
transactions, including account balances, positions, and activity;
• Information which may be received from consumer reporting
agencies, such as credit bureau reports; • Information relating to
your creditworthiness; • Information which may be received from
other sources with your consent or with the consent of your
introducing firm.
In addition to servicing your account, Apex may make use of your
personal information for analysis purposes, for example, to draw
conclusions, detect patterns or determine preferences.
Sharing of Non-public Personal Information Apex does not disclose
non-public personal information relating to current or former
customers of introducing firms to any third parties, except as
required or permitted by law, including but not limited to any
obligations of Apex under the USA PATRIOT Act, and in order to
facilitate the clearing of customer transactions in the ordinary
course of business.
Apex has multiple affiliates and relationships with third party
companies. Examples of these companies include financial and
non-financial companies that perform services such as data
processing and companies that perform securities executions on your
behalf. We may share information among our affiliates and third
parties, as permitted by law, in order to better service your
financial needs and to pursue legitimate business interests,
including to carry out, monitor and analyze our business, systems
and operations.
Security Apex strives to ensure that our systems are secure and
that they meet industry standards. We seek to protect non- public
personal information that is provided to Apex by your introducing
firm or otherwise obtained by Apex by implementing physical and
electronic safeguards. Where we believe appropriate, we employ
firewalls, encryption technology, user authentication systems (i.e.
passwords and personal identification numbers) and access control
mechanisms to control access to systems and data. Apex endeavors to
ensure that third party service providers who may have access to
non-public personal information are following appropriate standards
of security and confidentiality. Further, we instruct our employees
to use strict standards of care in handling the personal financial
information of customers. As a general policy, our staff will not
discuss or disclose information regarding an account except; 1)
with authorized personnel of your introducing firm, 2) as required
by law or pursuant to regulatory request, or 3) as authorized by
Apex to a third party or affiliate providing services to your
account or pursuing Apex’s legitimate business interests.
Access to Your Information You may access your account information
through a variety of media offered by your introducing firm and
Apex (i.e. statements or online services). Please contact your
introducing firm if you require any additional information. Apex
may use “cookies” in order to provide better service, to facilitate
its customers’ use of the website, to track usage of the website,
and to address security hazards. A cookie is a small piece of
information that a website stores on a personal computer, and which
it can later retrieve.
Changes to Apex's Privacy Policy Apex reserves the right to make
changes to this policy.
How to Get in Touch with Apex about this Privacy Policy For
reference, this Privacy Policy is available on our website at
www.apexclearing.com. For more information relating to Apex’s
Privacy Policy or to limit our sharing of your personal
information, please contact:
Apex Clearing Corporation Attn: Compliance Department 350 N. St.
Paul St., Suite 1300 Dallas, Texas 75201 214-765-1055 69057P-NEWF
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